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    VIVC   US9285341064

VIVIC CORP.

(VIVC)
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VIVIC CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION (form 10-Q)

11/15/2021 | 09:49am EST

FORWARD-LOOKING STATEMENTS

Statements made in this Annual Report that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such

as"may,""will,""expect,""believe,""anticipate,""estimate,""approximate" or "continue," or the negative thereof.

We intend that such forward-looking statements be subject to the safe harbors for such statements.

We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's commercially reasonable judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.



                             RESULTS OF OPERATIONS


Our financial statements have been prepared assuming that we will continue as a going concern. To evaluate this assumption, the section below with the title of "GOING CONCERN" should be reviewed carefully. In addition, NOTE - 4 to the unaudited Consolidated Financial Statements should also be reviewed carefully. Based on the assumption stated above, we have not included adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary if we are not able to continue in operation.

Our business has been impacted by the COVID-19 pandemic with the authorities implementation of various preventive measures including, but not limited to, travel bans and restrictions, mandatory quarantine requirements, limited business activities and operations, and shelter-in-place orders. These measures have led to, and are continuing to lead to, business slowdowns or shutdowns worldwide. The global economy and financial markets have been adversely influenced as well. Considering the features of our business in the tourism and recreation industries, the COVID-19 pandemic has caused a reduction in the demand for recreational trips and activities. Our business has been experiencing the downturn with the COVID-19 pandemic. It is expected that our business will be resumed, at least, after the abolition of the travel restrictions and mandatory quarantine requirements.



RESULTS OF OPERATIONS


Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.

We generated net revenues of $162,725 and $43,233 for the three months ended September 30, 2021 and 2020 respectively. The net revenues generated for the nine months ended September 30, 2021 and 2020 were $281,740 and $197,851 respectively. The increase in net revenues was primarily because the revenue deriving from consulting services rendered on sales and marketing of yachts increased.

The general and administrative expenses incurred for the three months ended September 30, 2021 and 2020 were $445,080 and $341,450 respectively. The general and administrative expenses incurred for the nine months ended September 30, 2021 and 2020 were $1,078,416 and $875,825 respectively. The fundamental reasons for the rise in the general and administrative expenses were that the company expanded its operations with increased legal fee, consultancy fee on business planning and projects, and staffing when comparing the same period between 2021 and 2020. General and administrative expenses were basically the business expenses and corporate overhead.

The net loss was $417,355 and $302,322 for the three months ended September 30, 2021 and 2020 respectively. The net loss was $2,203,628 and $669,107 for the nine months ended September 30, 2021 and 2020 respectively. The main reason for the increased losses was the impairment of goodwill incurred during the nine months ended September 30, 2021 and the increased general and administrative expenses.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2021 and December 31, 2020, our total assets were $838,103 and $881,685 respectively. The fall in total assets was primarily caused by the decreased cash and cash equivalent. As of September 30, 2021 and December 31, 2020, our total liabilities were $1,369,993 and $733,675 respectively. The accumulated deficits were $3,382,040 as of September 30, 2021, compared it as of December 31, 2020, accumulated deficits were $1,300,505. The increase in the accumulated deficits was basically caused by the impairment of goodwill incurred during the nine months ended September 30, 2021 and the increased general and administrative expenses. The total liabilities and shareholders' deficit as of September 30, 2021 and December 31, 2020 were $838,103 and $881,685 respectively. It was mainly caused by the rise in the accumulated deficits.

Cash Flows from Operating Activities

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The net cash used in operating activities were $1,072,478 and 1,236,483 for nine months ended September 30, 2021 and 2020, respectively. For nine months ended September 30, 2021, the most affected the net cash used in operating activities were the net loss $2,203,628 offset by the impairment loss on goodwill on the acquisition of a subsidiary of $1,215,934 and increase in accounts payable of $66,660. For nine months ended September 30, 2020, the most affected the net cash used in operating activities were the net loss of $669,107, decrease in accrued liabilities and other payables of $199,324, decrease in deposits and prepayments of $172,160 and decrease in other assets of $101,327.

Cash Flows from Investing Activities

The net cash used in investing activities were $157,926 and $0 for nine months ended September 30, 2021 and 2020, respectively. The sum represented the cash from acquisition of a subsidiary for nine months ended September 30, 2021. The change is primarily attributable to an increase in cash used in purchase of property, plant and equipment for nine months ended September 30, 2021.

Cash Flows from Financing Activities

The net cash provided by financing activities were $800,131 for nine months ended September 30, 2021 and $969,823 for nine months ended September 30, 2020. The net cash provided for these two periods was mostly attributed from the cash proceeds from issuance of stocks.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments.

In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with business and (ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements.

Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock.

Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.




MATERIAL COMMITMENTS



As of the date of this Report, we do not have any material commitments.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Report, there are no such arrangements. We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.



Going Concern


The financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue operating as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which states that we will realize our assets and satisfy any liabilities and commitments in the ordinary course of business.

© Edgar Online, source Glimpses

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